The S&P slid over 5% today while the XLF slumped nearly 17%. Stocks are getting killed on the back of continued economic weakness and poor financial earnings. It looks like the lows made back in November may be tested sooner than later. There were very few stocks that were spared in the beating today, DV, FDRY, TMTA some of them, and oil continued on its path lower as well.
Even the "survivors" are getting mauled. JPM, WFC, and BAC are all down substantially. However, the risks are a bit more balanced now that everything has been substantially trashed and there is a threat of significant stimulus being put out. As far as individual stocks, I'd keep an eye on LO with a bias towards the short side as it rallies to an area where it has previously peaked. DV has been showing relative strength but looks more like a long. GHL on the long side is starting to look interesting too as it comes back down to the 36-37 area. It has shown solid relative strength throughout this entire crisis.
Tuesday, January 20, 2009
Thursday, January 1, 2009
Nancy Havens Likes Arb Spreads
Check out www.bloomberg.com to see Nancy Havens, head of Havens Advisors, talk about her view on risk arb and what she is doing right now. Their original fund has never had a down year, so her opinion is definitely worth listening to. In the video, she seems to really like some situations right now and points to several deals that offer good opportunity. These include CYCL, FDRY, and UST, two of which I mentioned in an earlier post.
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